But these deposit interest rates are still above 3.5%, follow up! City Commercial Bank Lowers Interest Rates

Since September, there has been a resurgence of interest rate cuts, with state-owned and joint-stock banks collectively lowering their fixed deposit interest rates. A reporter from China Securities News noticed that several city commercial banks, including Bank of Beijing, Bank of Shanghai, Bank of Chongqing, and Bank of Suzhou, are joining the camp to lower deposit interest rates. Industry insiders say that this move is to some extent beneficial for banks to alleviate interest rate differential pressure.

In addition, when visiting multiple banks, the reporter found that "specialty deposits" are becoming the main force for customer managers to promote and the new favorite of depositors. Compared to regular deposits, characteristic deposit products have interest rate advantages; Compared to large certificates of deposit, specialty deposits have a limit advantage and a more affordable minimum deposit amount.

City Commercial Bank Follow up on Lowering Deposit Interest Rates

Since September 1st, state-owned banks and joint-stock banks have successively lowered deposit interest rates. The reporter found that urban commercial banks are closely following suit, gradually lowering the fixed deposit interest rate, with a maximum reduction of 35 basis points.

On September 2nd, Bank of Beijing lowered deposit interest rates. The official customer service of the bank told reporters, "The 3-month and six-month deposit interest rates have not changed in this adjustment, which are 1.3% and 1.55%, respectively. The one-year deposit interest rate has been lowered from 1.85% to 1.75%, the two-year deposit interest rate has been lowered from 2.3% to 2.1%, the three-year deposit interest rate has been lowered from 2.5% to 2.25%, and the five-year deposit interest rate has been lowered from 2.55% to 2.3%."

On September 5th, Shanghai Bank and Chongqing Bank began implementing the latest deposit interest rates. The reporter learned from the official customer service of Bank of Shanghai that the listed interest rates for one-year, two-year, three-year, and five-year deposits and withdrawals of Bank of Shanghai have been lowered from 1.85%, 2.2%, 2.45%, and 2.5% to 1.75%, 2%, 2.2%, and 2.25%, respectively.

The reporter learned from the official customer service of Chongqing Bank that the listed interest rates for one-year, two-year, three-year, and five-year deposits and withdrawals of Chongqing Bank have been lowered from 1.65%, 2.05%, 2.45%, and 2.5% to 1.55%, 1.85%, 2.2%, and 2.25%, respectively.

On September 6th, Suzhou Bank also lowered the deposit interest rate, and the listed interest rates for one-year, two-year, three-year, and five-year deposits and withdrawals were lowered from 1.8%, 2.3%, 2.75%, and 2.75% to 1.70%, 2.10%, 2.40%, and 2.40%, respectively.

Some city commercial banks have not yet taken action. For example, the customer manager of Nanjing Bank Hangzhou Branch told reporters, "Nanjing Bank has not yet adjusted the deposit interest rate. The one-year deposit interest rate is 2.05%, the two-year deposit interest rate is 2.55%, and the three-year and five-year deposit interest rates are 3.3%. Since the beginning of this year, the deposit interest rate has been decreasing, and it may be further lowered in the future."

In response to the further adjustment of deposit interest rates, the Guojin Securities team stated that the reduction in deposit interest rates will help banks maintain reasonable profits and net interest margin levels, and enhance the sustainability of supporting the real economy. The reduction of deposit interest rates guides the cost reduction on the debt side, alleviates capital constraints, and improves credit supply capacity. However, the deposit cost ratio of some banks is still at a high level, with a marginal increase compared to the end of last year, and there may still be room for structural adjustment. At the same time, deposit interest rates have been lowered, reducing the return on assets for residents, and some deposits may be moved or transferred to commodity bases, providing incremental funds for short-term bonds.

"Special deposits" are highly sought after

When the reporter consulted multiple bank branches about deposit business, many account managers recommended their bank's characteristic fixed deposits to the reporter, with some products having interest rates higher than 3.5%. Although the interest rate may be slightly lower than that of large certificates of deposit with the same maturity, it has a limit advantage and there is no need to worry about not being able to purchase them in a hurry.

The customer manager of a branch of Bank of Beijing in Beijing introduced to reporters that the bank's "Jinghuicun" is a characteristic fixed deposit product launched based on factors such as the minimum deposit amount, term, and region. "For a three-year deposit, the annual interest rate is 2.65% for a deposit of over 50000 yuan, and 2.6% for a deposit of over 10000 yuan. For a two-year deposit, the annual interest rate is 2.3% for a deposit of over 10000 yuan. For large certificates of deposit, there are currently no three-year or five-year deposits, and the interest rate for a two-year deposit is 2.4%, but there is no limit," said the customer manager.

The customer manager of a branch of Guangdong Nanyue Bank in Dongguan told reporters that the interest rate of the bank's characteristic deposit products has been lowered compared to August. "The three-year interest rate is 3.35% and 3.4%, while the five-year interest rate is 3.65% and 3.7%. There is no transfer function, and if withdrawn midway, interest will be calculated based on the current account. For large certificates of deposit, the three-year interest rate is 3.45% and the minimum deposit amount is 200000 yuan. They are transferable and available for purchase every Tuesday morning at 10am."

In addition, the customer manager of a branch of Guangdong Huaxing Bank in Guangzhou told reporters that the bank has distinctive deposits such as "Emerging Deposits" and "Anxing Deposits". Among them, the "emerging deposit" has a minimum deposit of 10000 yuan, with a maximum five-year interest rate of 3.9% and a three-year interest rate of 3.5%. "The 'Anxingcun' product, which was only launched last month, has a five-year term and an interest rate of 3.95%," said the customer manager.

A customer manager of a commercial bank in a certain city told reporters that the main advantage of specialty deposit products is that "the deposit interest rate is getting lower and lower, compared to regular deposits, the interest rate of specialty deposits is higher; it is not much lower than the interest rate of large deposits, but there is no need to rush like large deposit certificates, and the minimum deposit amount does not need to be so high." The head of a relevant department of a bank also told reporters that the bank will focus its retail efforts on specialty deposits and other products.